Fibonacci Retracements/Extensions are displayed by first drawing a trendline between two extreme points. After selecting Fibonacci Retracement tool from Draw toolbar, a series of up to nine horizontal lines will be drawn at the Fibonacci levels of 0.0%, 23.6%, 38.2%, 50.0%, 61.8%, 100%, 161.8%, 261.8%, 361.8% and 423.6%. After a significant move (up or down), prices will often rebound and retrace a significant portion of the original move. As the price retraces, support and resistance levels will often occur near the Fibonacci Retracement levels.
Fibonacci retracement/extension tool works in 4 different modes depending on the direction of trend line drawn:
A controlling trend line drawn with dotted style can be used to delete Fibonacci retracement study at once using right mouse button menu.